Serial No.
Page No.
1 Acknowledgement
2 1.Chapter 1: Introduction
3 Brief Description
4 Need of the Project
5 Literature Review
6 Objective of Study
7 Research Methodology
8 2.Chapter 2: National and International
9 3.Chapter 3: Presentation, Analysis and
10 4.Chapter 4: Conclusion and
12 Annexure


We are immensely overjoyed to acknowledge our
sincere thanks to my faculty guide Prof. Bipin
Choudhury, for providing necessary guidance during
our project.
We would also like to thank him for his invaluable
advice and inputs throughout the duration of the
project. He ensured that we were always at ease with
what we were doing and constantly provided me with
the macro perspective to any issues that we faced so
that we was able to move in the right direction.

Page 1

In today's business world environmental issues
plays an important role in marketing. All most all
the governments around the world have concerned
about green marketing activities that they have
attempted to regulate them. There has been little
attempt to academically examine environmental or
green marketing. It introduces the terms and
concepts of green marketing, briefly discuss why
going green is important and also examine some of
the reason that organizations are adopting a green
marketing philosophy.
It also focuses some of the problems with green
marketing. It also discusses the keys to green
marketing and how firma are using green marketing.
This report also stresses upon the effect of green
marketing on the consumers. Green marketing isn't
just a catchphrase; it's a marketing strategy that can
help you get more customers and make more money.
But only if you do it right.

Page 2

According to the American Marketing Association,
Green Marketing is the marketing of products that
are presumed to be environmentally safe. Thus
green marketing incorporates broad range of
activities, including
• Product modification,
• Changes to the production process,
• Packaging changes, as well as
• Modifying advertising.
Green Marketing refers to the process of selling
products and/or services based on their
environmental benefits. Such a product or service
may be environmentally friendly in it or produced
and/or packaged in an environmentally friendly way.
Green Marketing involves developing and promoting
products and services that satisfy customers want
and need for Quality, Performance, Affordable
Pricing and Convenience without having a
detrimental input on the environment.
Page 3


Most of the companies are venturing into green
marketing because of the following reasons:
Issues like Global warming and depletion of ozone
umbrella are important for the healthy survival.
Every person rich or poor would be interested in
quality life with full of health and vigour and so
would the corporate class. Harm to environment cost
by sustain business across the globe is realized now
though off late. This sense is building corporate
citizenship in the business class. So green marketing
by the business class is still in the selfish
anthological perspective of long term sustainable
business and to please the consumer and obtain the
sanction license by the governing body. With the
proliferation of environmental stories in the press
and broadcast media, individuals (whether as a
consumer or acting for a company), are more aware
of their personal responsibility to try to make a
difference. Appealing to this need can increase
response rates to marketing executions and build
brand loyalty.
Page 4
Green marketing is very low on the agenda of most
businesses and therefore its still an under-leveraged
USP (Unique Selling Proposition). Effective green
marketing targeted at the right audience will make a
difference. There are basically five reasons for which
a marketer should go for the adoption of green
They are:
1. Opportunities or competitive advantage
As demands change, many firms see these changes
as an opportunity to be exploited and have a
competitive advantage over firms marketing non-
environmentally responsible alternatives. Some
examples of firms who have strived to come more
environmentally responsible, in an attempt to better
satisfy their consumer needs are:
• McDonald's replaced its clam shell packaging with
waxed paper because of increased consumer
concern relating to polystyrene production and
Ozone depletion.
• The Surf Excel detergent which saves water
(advertised with the message—"do bucket paani roz
Page 5
• The energy-saving LG consumer„s durables are
examples of green marketing.
• Xerox introduced a "high quality" recycled
photocopier paper in an attempt to satisfy the
demands of firms for less environmentally harmful
2. Corporate Social Responsibility
Many firms are beginning to realize that they are
members of the wider community and therefore
must behave in an environmentally responsible
fashion. This translates into firms that believe they
must achieve environmental objectives as well as
profit related objectives. This results in
environmental issues being integrated into the firm's
corporate culture. There are examples of firms
adopting both strategies.
**Organizations like the Body Shop heavily promote
the fact that they are environmentally responsible.
**Fund managers and corporate developers too, are
taking into account the environmental viability of the
company they invest in Venture Capitalists are
investing in green business because they believe it's
a growth opportunity.
Page 6
Britain based HSBC became the world's first bank to
go carbon neutral late last year and is now turning
its 11000 buildings in 76 countries worldwide into
models of energy efficiency.
**An example of a firm that does not promote its
environmental initiatives is Coca-Cola. They have
invested large sums of money in various recycling
activities, as well as having modified their packaging
to minimize its environmental impact.
**Another firm who is very environmentally
responsible but does not promote this fact, at least
outside the organization, is Walt Disney World
(WDW). WDW has an extensive waste management
program and infrastructure in place, yet these
facilities are not highlighted in their general tourist
promotional activities.
3. Government Pressure
As with all marketing related activities, governments
want to "protect" consumers and society; this
protection has significant green marketing
implications. Governmental regulations relating to
environmental marketing are designed to protect
consumers in several ways.
Page 7
They want to reduce production of harmful goods or
by-products , modify consumer and industry's use
and/or consumption of harmful goods, ensure that
all types of consumers have the ability to evaluate
the environmental composition of goods.
Governments establish regulations designed to
control the amount of hazardous wastes produced
by firms. For example:
• The ban of plastic bags in Mumbai, prohibition of
smoking in public areas, etc.
• Directive to completely adopt CNG in all public
transport systems to curb pollution in New Delhi.
4. Competitive Pressure
Another major force in the environmental marketing
area has been firms' desire to maintain their
competitive position. For example, it could be argued
that Xerox's "Revive 100% Recycled paper" was
introduced a few years ago in an attempt to address
the introduction of recycled photocopier paper by
other manufacturers.

Page 8
5. Cost Or Profit Issues
Reduction of harmful waste may lead to substantial
cost savings. Sometimes, many firms develop
symbiotic relationship whereby the waste generated
by one company is used by another as a cost-
effective raw material.

Page 9

The concept of green marketing has evolved over the
years. There are basically three stages in which it
has evolved.
1. The decade of the late 1980s marked the first
stage of green marketing, when the concept of “green
marketing” was newly introduced and discussed in
industry (Peattie and Crane, 2005).
Owing to the upsurge of this new concept many
marketer tried to involve in green marketing in order
to generate positive consumer response which would
be converted into goodwill, market share and sales.
However in spite of reports stating that the
environmental problems constituted one of the
uppermost public concerns, market growth of these
products fell short of expectations.
2. The second stage started off as a consumer
backlash. Many organizations “green washed” the
consumers. In order to improve their sales, thus
creating cynical attitude of the consumers towards
the green concept.

Page 10
Some of the marketing practices which lead to the
failure of green marketing during this period are
(Peattie and Crane 2005):
a.Green spinning -> Taking a reactive stance of
“green”, if accused of malpractice
b.Green Selling -> taking an opportunistic approach
by adding some green claims to existing products
with an intention to boosts profits.
c.Green harvesting -> Becoming enthusiastic about
the environment only when greening would result in
cost savings.
d.Entrepreneur marketing -> Developing innovative
green products without actually considering
consumer needs.
e.Compliance marketing -> Just following the
environmental standards as an opportunity to
promote the company‟s green credentials rather than
actually being involved
3. The evolution of the third stage is just a response
to the anomalies occurring in the second stage.

Page 11
With the implementation of advanced technology,
stricter state enforcement on deceptive claims, govt.
regulations and incentives and closer scrutiny from
various environmental organizations and media
many green products have regained confidence in
the 2000‟s (Gurau and Ranchhod, 2005; Ottoman,
2007). With green and sustainable development as
the theme of 21st century development, two trends
have been predicted as inevitable in the near future
of green marketing. They are:
a)First the concept of an eco friendly approach of
doing business will be pushed into
mainstream(Hanas 2007)
b)Second, corporations from developed countries will
initiate international green marketing in order to
expand their market, increase their sales and take
advantage of the positive image of their green brands
established in their domestic markets (Gura˘u and
Ranchhod, 2005; Johri and Sahasakmontri, 1998;
Pugh and Fletcher, 2002).

Page 12

• Eliminate the concept of waste
• Reinvent the concept of product
• Make prices reflect actual and environmental costs
• Make environmentalism profitable
• Bringing out product modifications
• Changing in production processes
• Packaging changes
• Modifying advertising.
>>Explore the various factors which influence the
green purchasing behavior of the Indian consumer.
>>Will advertising attitude and ad usage of a person
predict his green purchasing behavior?
>>Will his attitude towards private brands influence
his green purchasing behavior?
>>To give a segmented opinion of the green
purchasing behavior attitude based on their gender,
family type, education level etc.
Page 13

I being the sole researcher of this project visited
college libraries, many book stores to collect and
gather required information‟s. I also took some
references from various sites in the internet. I did an
brief interview with an educated person to grant his
approach towards green marketing. My professors in
college also helped me with many information‟s that
I couldn‟t have gathered on my own.

Page 14

In 1989, 67 percent of Americans stated that they
were willing to pay 5-10 percent more for ecologically
compatible products.

By 1991, environmentally
conscious individuals were willing to pay between
15-20 percent more for green products. Today, more
than one-third of Americans say they would pay a
little extra for green products.
An important challenge facing marketers is to
identify which consumers are willing to pay more for
environmentally friendly products. It is apparent
that an enhanced knowledge of the profile of this
segment of consumers would be extremely useful.
Everett Rogers, communication scholar and author
of “Diffusion of Innovations”, claims that the
following five factors can help determine whether a
new idea will be adopted or not, including the
idealism of the shift towards “green”:
1. Relative advantage: is the degree to which the
new behavior is believed to accrue more
beneficial outcomes than current practice.
2. Observability: is how easy it is to witness the
outcomes of the new behavior.
Page 15
3. Trial ability: is the ease with which the new
behavior can be tested by an individual without
making a full commitment.
4. Compatibility: is the degree to which the new
behavior is consistent with current practice.
5. Complexity: is how difficult the new behavior is
to implement.

GPNI is an evolving network of professionals
interested and active in the general area of
sustainable consumption and production- more
specifically: Green Purchasing and Public
Procurement. It is currently a loose informal
network of professionals primarily operating as
an internet based electronic forum.
The objectives of the GPNI are:
1. To create awareness amongst Indian industry
and other stakeholders about Green Purchasing
and Procurement (GPP).
2. To encourage and facilitate implementation of
GPP and Greening Supply Chains (GSC) projects
to enhance the competitiveness of the Indian

Page 16


ITC: Green Campaign
• ITC has been 'Carbon Positive' three years in a row
(sequestering/storing twice the amount of CO2 than
the Company emits).
• Water Positive' six years in a row (creating three
times more Rainwater Harvesting potential than
ITC's net consumption).
• Close to 100% solid waste recycling.
• All Environment, Health and Safety Management
Systems in ITC conform to the best international
• ITC's businesses generate livelihoods for over 5
million people.
• ITC's globally recognized e-Choupal initiative is the
world's largest rural digital infrastructure benefiting
over 4 million farming families.
Page 17
• ITC's Social and Farm Forestry initiative has
greened over 80,000 hectares creating an estimated
35 million person days of employment among the
• ITC's Watershed Development Initiative brings
precious water to nearly 35,000 hectares of dry
lands and moisture-stressed areas.
• ITC's Sustainable Community Development
initiatives include women empowerment,
supplementary education, integrated animal
husbandry programmes. Maruti: Greening The
Supply Chain
• The company has remained ahead of regulatory
requirements in pursuit of environment protection
and energy conservation at its manufacturing
facilities, and in development of products that use
fewer natural resources and are environment
• The company credited the 'Just-in-Time'
philosophy adopted and internalized by the
employees as the prime reason that helped to excel
in this direction.

Page 18
• The company has been promoting 3R since its
inception. As a result the company has not only
been able to recycle 100% of treated waste water but
also reduced fresh water consumption. The company
has implemented rain water harvesting to recharge
the aquifers. Also, recyclable packing for bought out
components is being actively promoted.
• The company has been facilitating implementation
of Environment Management System (EMS) at its
suppliers' end. Regular training programs are
conducted for all the suppliers on EMS. Surveys are
conducted to assess the vendors who need more
guidance. The systems and the environmental
performance of suppliers are audited.
• The green co-efficient of this system is much better
than the conventional system.

Page 19

Many organizations want to turn green, as an
increasing number of consumers' want to associate
themselves with environmental-friendly products.
Alongside, one also witnesses confusion among the
consumers regarding the products. In particular,
one often finds distrust regarding the credibility of
green products. There are numerous challenges in
the field of green marketing. Some of the major
hurdles are as following:
1. Need For Standardization:
It is found that very less percentage of the marketing
messages from Green campaigns are entirely true
and there is a lack of standardization to authenticate
these claims. There is no standardization to
authenticate these claims. There is no
standardization currently in place to certify a
product as organic. Unless some regulatory bodies
are involved in providing the certifications there will
not be any verifiable means
Page 20

2. New Concept:
Indian literate and urban consumer is getting more
aware about the merits of Green products. But it is
still a new concept for the masses. The consumer
needs to be educated and made aware of the
environmental threats. The new green movements
need to reach them asses and that will take a lot of
time and effort.

3. Patience and Perseverance:
The investors and corporate need to view the
environment as a major long-term investment
opportunity, the marketers need to look at the long-
term benefits from this new green movement. It will
require a lot of patience and no immediate results.

Page 21

The further information‟s stated in this project are
taken from some books, reports and some of the
websites named below :
(*)”Green Marketing: Challenges & Opportunities for
the New Marketing Age”
(*)The Real News About Green Consuming-
Jacquelyn Ottman.
(*)Green Sales Pitch Isn‟t Moving Many Products-
The Wall Street Journal
(*)Ecological Marketing-
(*)Green Trade & Development-Green Markets
International, Inc.

Page 22
Choose Your Gender Male Female
Share Your Age

Marital Status
Married Unmarried
Graduate Yes No
(1) Least



(4)Highly Important

Rate the parameters on the magnitude on which it affects your green purchasing
(1) (2) (3) (4)
My awareness of the environment affects my green
purchasing behavior

My education influences my green purchasing behavior

Current social trends affects my green purchasing behavior

How is cost involved in my green purchasing behavior

Somewhere I believe it‟s the fear of being out-dated that
affects me in green purchasing behavior

Page 23
I am not concerned about my green purchasing behavior

I think it‟s the responsible part of me that involves me in green
purchasing behavior

I usually purchase brand name products

Most advertising provides consumers with essential information

Most advertising makes false claims

Most advertising is intended to deceive rather than to inform

I often gather information from advertisements about products
before I buy

Page 24